Finding value on the Indian stock market

What’s the latest on the India stock market? Glad you asked.

“We’re buying…we’re finding a lot of value,” says our new friend, Ajit Dayal. From his office in Mumbai, Ajit runs a mutual fund focusing on Indian shares. “The Index is very high. You look at it and you think Indian shares are too expensive. But the index is not very representative. It includes only a handful of very large cap corporations. And they are too expensive. But overall, stocks in India sell for only 14 times earnings. And they’re growing earnings at more than 20% per year. You’d have a hard time finding those numbers anywhere else in the world.”

Ajit is bullish on India. There are not many things we are bullish on, here at the Markets and Money. And about none of them are we bullish without reservations. Our reservation about the Indian market is that it is too far away…both in distance and in culture. We don’t think we could ever  understand it.

“Useful information declines by the square of the distance from its source,” we recall.

We’re a long way from Mumbai.

Of course, we’re a long way from Tokyo too…and we’re bullish (with reservations) on Japan.

Bill Bonner
Markets and Money

Bill Bonner

Bill Bonner

Best-selling investment author Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter companies. Owner of both Fleet Street Publications and MoneyWeek magazine in the UK, he is also author of the free daily e-mail Markets and Money.
Bill Bonner

Latest posts by Bill Bonner (see all)

Leave a Reply

1 Comment on "Finding value on the Indian stock market"

Notify of
Sort by:   newest | oldest | most voted

Yes. In India stocks are cheaper to be bullish. But still the sensex and most other stocks are getting affected not only by the government decisions but also by the global cues. This is causing a lot of volatility in the market. I see that many stocks have gone up and came back to the same values within a span of three months. This seems to be the longest time the stocks took a beating this year.

Letters will be edited for clarity, punctuation, spelling and length. Abusive or off-topic comments will not be posted. We will not post all comments.
If you would prefer to email the editor, you can do so by sending an email to